Going 'Vocal For Local' Is The Key To Unlocking Startup And Economic Growth

Going 'Vocal For Local' Is The Key To Unlocking Startup And Economic Growth

Pravin Khandelwal, Managing Director, Pranay Care and Director, Leadership & Motivation, Risers Accelerator, 0

He is a technology passionate personality with more than one decade experience in leadership role.

They say that the punch that knocks you out isn’t often the hardest one; it’s the one that you don’t see coming. Same has been the case the Covid-19 pandemic that has been rampaging around the world for almost half a year now. The entire global economy has been brought to its knees by an invisible enemy – and Indian economy is no different. In order to revive the economy and encourage startup growth in the country, Prime Minister NarendraModi has called for self-reliance. By coining the term “vocal for local”, the PM has stressed on the importance of supporting local businesses and startups.

“It is time to be vocal about local. We have to make local our motto. Global brands began locally. But when their people started marketing and branding, they became global. Every Indian should be vocal for local.” he said.

How Can Indian Startups Benefit From ‘Vocal For Local’?
The PM’s clarion call ‘vocal for local’ is to encourage people to buy goods and services from homegrown businesses instead of relying heavily on foreign companies. This will not only help keep the capital in the country but it will also play a major role in realizing the dream of creating a $5 trillion economy by the end of the year 2025.

The idea behind vocal for local is to empower local brands and provide them a nurturing environment so that they can grow to their full potential within the country. Once these startups become successful within the country, they can be taken into the global arena. By creating a solid presence in the global marketplace, we will be able to establish ourselves as a powerful economy – which would help us greatly on the negotiation table.

Indian, as well as foreign venture capitalists have a great opportunity on their hands right now. If they choose to back local brands, they would get full support and cooperation from the government as this is exactly what the government is calling for. Nirmala Sitharaman, Finance Minister, Government of India, has announced some measures and SOPs for the MSMEs and for micro food processing units that would help create smaller ventures.

The recent change in the definition of MSMEs would also
benefit the startups greatly. Since, under the new definition, the revenue bracket has been expanded, it would mean that many more companies would now be able to retain their MSME tag ever after they’ve grown to a certain size.

Since these startups would already be on a successful trajectory, more venture capitalists would be interested in investing them as these startups would be looking to expand their wings even more and acquire unicorn level.

‘Vocal For Local’ Can Create China Like Startup Ecosystem
There are plenty of startups across the country that have a potential to really bloom, but they haven’t been able to do so, because they have been lacking intellectual support and technical know-how from the government – but that can change now. Even these small businesses are now thinking about going global, and ‘vocal for local’ would play an instrumental in the realization of their dreams.

The idea behind vocal for local is to empower local brands and provide them a nurturing environment so that they can grow to their full potential within the country

Given proper guidance and support, these startups can become publicly listed or they can get acquired by much bigger international brands, which would provide fine exits for the venture capitalists. India’s already recognized globally as the startup hub, and by going ‘vocal for local’, we can make our country the centre of the global supply chain as well.

Vocal For Local Is The Key To Restoring The Economy
These are difficult times and the situation demands that we support our local businesses and equip them with right tools to weather the storm as it can greatly help us restore our fallen economy. Currently, we need to focus on becoming self-reliant and help the small scale industries reach a level where they can compete in the global marketplace.

By contributing in reviving our economy, we can create more jobs for the people, bring about a paradigm shift in the business processes and strengthen efficiency.

It should be noted however, that being ‘vocal for local; doesn’t mean that we have to boycott globalization, cut all ties with the global marketplace and live within our own economic bubble. The idea is not to reject globalization, but to indulge in a new form of globalization - one that suits our interests the best. Small and medium scale businesses have always been the backbone of our economy and the time has come when we must do something to strengthen our spine, so that we can stand upright and face the crisis that is plaguing us.